We've heard of the all hazards approach to risk management. But what of it's counterpart, the all opportunities approach?
Maybe another word for it could be luck management.
The All Hazards Approach
A comprehensive risk management framework can address known and unknown risks, even the proverbial Black Swans. In emergency management, this concept is known as the ‘all-hazards approach’.
The fundamental principle of the all-hazards approach (AHA) is that we cannot predict with certainty what we will face but that by preparing for a credible range of predictable risks, we will be reasonably prepared no matter what occurs.
Our emergency services are based on this concept. We don’t know what will happen on any given day, but we do know that if we have highly trained and well-resourced Police, Ambulance, and Fire services, they will be able to respond to earthquakes, armed assaults, car crashes, gas fires, explosion and more with a high level of readiness.
All Opportunities Approach
The concept of an "All Opportunities Approach," while not a widely recognized term in risk management or emergency services, can be conceptualized as a strategic counterpart to the "All Hazards Approach."
Whereas the All Hazards Approach focuses on preparing for a wide range of potential risks and emergencies, the All Opportunities Approach (AOA) would similarly aim to prepare for and capitalize on a broad spectrum of potential opportunities.
In a risk management context, this approach would involve identifying, assessing, and proactively preparing to leverage various opportunities that may arise, regardless of their nature or source.
While it's impossible to predict with certainty which opportunities will present themselves, by preparing for a credible range of predictable opportunities, an organization or individual can be reasonably prepared to capitalize on them, no matter what occurs.
In practice, we do opportunity management and opportunity realization all the time in project management, marketing, research and development. We just call it 'business as usual'
In a more formal framework, here are a few thoughts on how a structured approach to opportunity management might look
Comprehensive Preparation
Just as emergency services train for a variety of scenarios to ensure readiness for any disaster, individuals and organizations would cultivate a broad set of skills, resources, and strategic plans and train to be able to take advantage of different types of opportunities as they present. Training in this context might for example, focus on technological advancements, market shifts, or societal changes.
Agility and Flexibility
Emphasizing the ability to quickly adapt to new information or situations, much like how emergency responders must adjust to the specifics of a situation they face. This means being able to pivot strategies, reallocate resources, and change directions with minimal friction. This is the default mode for most startups but somehow, this approach seems to face with time.
Continuous Learning and Improvement
Just as emergency services debrief and learn from each incident to improve future responses, the All Opportunities Approach would involve analyzing the outcome of each seized or missed opportunity to refine and improve future strategies for opportunity identification and exploitation.
Resource Allocation for Opportunity Exploration
Allocating resources not just for dealing with known opportunities but also for exploring new areas where potential opportunities may lie. This could mean investing in innovation, research, and development efforts or setting aside time and resources for strategic exploration. Google, Facebook, Amazon, and Apple do this all the time with new businesses, research, and experimentation.
Collaboration and Networking
Building networks and partnerships that can provide new opportunities or enhance the ability to capitalize on them, similar to how emergency services might work together across jurisdictions during a disaster.
Risk Assessment and Management
Evaluating the potential downsides or risks associated with pursuing certain opportunities and having plans in place to mitigate those risks, ensuring that the pursuit of opportunities does not expose the organization or individual to undue harm.
Last But Not Least
The All Opportunities Approach, thus, boils down to fostering a proactive, prepared, and agile mindset that seeks to identify, assess, and effectively leverage opportunities for growth, innovation, and competitive advantage.
